|
Some cable operators associations with operations in the suburbs
of Mumbai have formed the Mumbai Cable Operators' Federation (MCOF).
Their motto - create a single platform and invite all cable operators
against injustice and oppression committed by what they call,' the
nexus of broadcasters and MSOs'.
The MCOF alleges that cable operators who owe allegiance to the
MSOs have captured 60 per cent of Mumbai (total of 5000 cable operators
in Mumbai) whereas the small associations currently have 40 per
cent of the market.
The MSOs have encouraged 'dummy' operators to apply for licences
in each area of the city and intend eventually buyout all the remaining
small cable operators, allege the members of the MCOF. The MCOF
has demanded an investigation to unmask the MSOs who encourage dummy
cable operators in each area.
Demands of the MCOF:
MCOF spokespeople Nandan Basu, Vasant Majetia and Narsi Bhanushali
state that they are risking their lives by coming out openly against
the MSOs and powerful politicians. They urged the government and
broadcasters to conduct investigations against the MSOs who were
responsible for pilferage.
The MCOF also demands that consumers' fora and associations must
target pay channels for increasing their bouquet prices regularly.
The MCOF urged the government to consider their grievances and grant
industry status to the cable industry - especially the single operators.
The association also rued the fact that the government didn't give
any representation to the smaller cable operators on its CAS committees
whereas the MSOs were given due representation.
The MCOF also says that the politicians, consumers and consumer
bodies are unfairly placing the blame of cable fees hikes on cable
operators. Primarily, the MCOF is reacting to the fact that the
Bharatiya Janta Party (BJP) has raised the contentious issue of
cable fees and made it a political issue in Mumbai.
MCOF reacts to the recent campaigns by consumer associations
and politicians:
BJP MP Kirit Somaiya had called a press conference on
12 February 2003 and urged consumers to pay cable operators a maximum
of Rs 150 per month. Giving the cable operators a deadline of 16
February 2003.
Somaiya stated that he would file cases against those cable operators
who charged more than Rs 150 per month if the cable operators don't
fall in line. Generally, Mumbai's consumers pay an average of Rs
200 per month - with a minimum of Rs 100 and a maximum of Rs 250
per month, say representatives of the cable associations.
MCOF spokesperson Basu says: "We are ready to support Somaiya's
campaign and the consumer bodies, as long as they realise that the
main culprits are the broadcasters (with pay channels) and the MSOs.
We have always maintained that we are businessmen who empathise
and understand the problems of the consumers."
"There are so many consumers who cannot afford to pay us or
delay payments. We have borne the burden and paid the MSOs money
out of our own pockets. We often get blamed because we interface
with the consumers directly whereas the MSOs remain in the background,"
says MCOF's Basu.
"The consumer bodies are not communicating that the free-to-air
channels can cost anything between Rs 100-150. Their internal guideline
state that these amounts are valid for free-to-air channels whereas
the consumers take it for granted that they would get pay channels
within the same amount. The consumer bodies have not bothered to
listen to our plight" says MCOF's Bhanusali.
MCOF blames broadcasters and MSOs:
The MCOF circulated a note which shows that the cost of accessing
different bouquets, maintenance charges and the entertainment taxes
(paid by the cable operator and not the MSO) add up to Rs 369.65
per month.
The following is the break-up: Zee Turner - Rs 60; Star bouquet
- Rs 60; Sony's One Alliance bouquet - Rs 55; Modi Entertainment
(MEN) - Rs 25.05; ESPN-Star Sports - Rs 32; Movies copyrights -
Rs 15; cost of material and maintenance - Rs 75; cost of entertainment
taxes - Rs 30; cost of service charges Rs 17.60. The MCOF mentions
that the figures for the year 2002 were in the region of Rs 252.26
per month; and Rs 100 in the 1990s.
Currently, the cable operators collect the charges from the consumers
and pay the MSOs Rs 150 per month whereas the MSOs pay the individual
bouquet charges to the broadcasters. In 2002, they used to pay Rs
100 to the MSOs. The MCOF also adds that MSOs never declare the
exact numbers to the broadcasters and instead blame the cable operators
for withholding the number of connections.
"We are unfairly being branded as extortionists and hooligans.
We are ready to charge consumers Rs 140 per month if the pay channels
become free-to air and the MSOs stop their manipulations. Our maintenance
charges are Rs 75 per month and we also pay taxes. The MNC broadcasting
companies have started acquiring cable operations. Once they take
charge of cable operations, the consumers will be pulled into a
never-ending vortex from which there is no escape, " says MCOF's
Bhanushali.
The MCOF alleges that broadcasters and MSOs have entered into a
pact wherein the broadcaster only routes signals through the MSOs.
The broadcasters refuse to directly deal with the small cable operators,
as per the claims of the MCOF. The MCOF members also state that
the MSOs dictate terms to the cable operators.
Even when certain MCOF members agreed to invest Rs 400,000 and
Rs 7,00,000 for setting up control room facilities for free-to-air
channels and pay channels respectively, the broadcasters refused
to share signals and instead directed them to the MSOs.
"MSOs have a control room with the headend, amplifier and splitter
from which we get our signals. MSOs and broadcasters refuse to give
us decoder boxes even if we wish to. MSOs also encourage their own
people to apply for licences. These dummy operators exist in each
and every area. Even if we blank out signals, the dummy operators
obey the instructions of the MSOs and start offering alternative
services to consumers at reduced rates. None of these declarations
are made to the broadcasters, " alleges Basu.
The MCOF also states that the government grants licences to all
and sundry without checking whether it has given a licence in any
particular area to an operator.
MCOF members state that they cannot complain against the MSOs because
their signals will cut and their lines will be opened. "The MSOs
also have an unwritten pact that none of the other MSOs would support
a cable operator who has been blacklisted. We are trapped from all
sides," says MCOF's Raju Chaudhary.
MCOF feels that CAS will spell doomsday for the smaller players:
The MCOF members say that they are unsure of what will happen post
14 July 2003 when CAS implementation in the city of Mumbai will
commence. "More than 40-50 per cent of Mumbai's residents stay in
slums. They crib about paying Rs 100 per month; will surely refuse
to invest Rs 3000-4000 in a set top box (STB) and the increased
monthly charges. The government has not yet defined any MRP (market
retail price), unlike in the case of FMCGs," says MCOF's Majetia.
"Even post CAS, the broadcasters will make money from advertising
even on their pay channels. We don't get a single penny out of the
local advertising shown on regional cable channels as these monies
go to the MSOs," says MCOF's representative Majetia.
MCOF demands industry status:
The MCOF has also demanded that the government must consider their
case favourably and grant industry status to the cable operators.
MCOF spokesperson Majetia says: "The cable operators started this
business long back without government support. We invested lakhs
of rupees despite being unsure of the returns. The government started
levying taxes after the business model succeeded. However, the small
cable operators find it very difficult to get loans or any form
of finance from banks or financial institutions."
"The cable industry has given employment to nearly 200,000 unskilled
and semi-skilled people and more than 5 million people all over
the country. Post CAS, all these people will suffer. The management
teams of MSOs are earning five figure salaries whereas our returns
are decreasing day by day," adds MCOF's Basu.
Better late than never, seems to be the motto of the MCOF which
has raised cudgels against the broadcasters and the MSOs!
|
